# Answer to Question #31792 in Microeconomics for cam

Question #31792
Can you help me with the following Q.

a monopolist faces a demand curve p= a-Q.

The monopolist incurs average cost (AC) which equals to marginal cost (MC). Lets assume that AC=MC=c. if the monopolist&#039;s marginal revenue is given by the equation MR=a-2Q then:

a/ calculate the monopolist&#039;s TR and TC.
b/ if monopolist isnt allowed to discriminate the price, what will be its profit maximization output level? what will be the total profit and price at the profit maximization output level?
1
2013-06-17T09:20:10-0400
demand curve p= a-Q.
AC = MC = c
MR=a-2Q
a) calculate the monopolist&#039;s TR and TC.
MR = TR&#039;, so TR = 0.5a^2 - Q^2
MC = TC&#039;, so TC = 0.5c^2
b) if monopolist isn&#039;t allowed to discriminate the price, what will be its
profit maximization output level?
The monopolist needs for profit maximization the output level to be in the
point, where MR = MC
So, a - 2Q = c.
Q = (a - c)/2
what will be the total profit and price at the profit maximization output
level?
The price will be p = a - Q = a - a/2 +c/2 = (a + c)/2
The profit will be TR - TC = P*Q - TC = (a + c)*(a - c)/4 - 0.5c^2 = 0.25a^2 -
0.25c^2 - 0.5c^2 = 0.25a^2 - 0.75c^2

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